Investment inflows into the country have dropped by &11bn from 20.75bn recorded into 2014 to $9.64bn at the end of 2015 fiscal year.
The National Bureau of Statistics in its capital importation report blamed the development on both external and internal factors. For the external factors, the report explained that while the country had between 2012 and 2014 experienced high increase in the level of investment inflows owing to its inclusion in the JPMorgan Bond Index, such could not be achieved in 2015.
For internal factors, the bureau said the tougher economic environment in the country was responsible for the drop in investments.
The NBS said in each of the consecutive quarters of 2015, there had been a large annual drop more than what was recorded in the previous period.
In the third and fourth quarters, capital inflows were respectively 58 per cent and 65 per cent lower than in the same quarters of 2014.
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The report stated that the sum of $2.74bn was invested in the economy between July and September last year, while the balance of $1.55bn was invested in the economy in the last three months of 2015.
The report read in part, “The total value of capital imported into Nigeria in the third quarter of 2015 was $2.74bn, up by 3.07 per cent from the preceding quarter. This was followed by a total of $1.55bn in the fourth quarter, a decline of 43.34 per cent from levels recorded in the previous quarter.
“The total for 2015 was recorded at $9.643bn. This represents a 53.53 per cent fall on the previous year when the total was $20.750bn. Each consecutive quarter of 2015 saw a larger annual fall than the previous; in the third and fourth quarter, capital inflows were respectively 58.00 per cent and 65.40 per cent lower than in the same quarters of 2014.”
Nigeria was removed from the index last year due to what was described as lack of liquidity in the system for foreign investors as a result of scarcity of foreign exchange.